By Duruthu Edirimuni Chandrasekera The National Savings Bank (NSB) is planning a roadshow abroad ahead of raising a US $1 billion bond, sources close to the bank said. “This year NSB is planning a roadshow in some countries as they want to raise international funding this year,” a source said, noting that the roadshow is planned [...]

NSB plans roadshow ahead of US$ 1 bn bond

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By Duruthu Edirimuni Chandrasekera

The National Savings Bank (NSB) is planning a roadshow abroad ahead of raising a US $1 billion bond, sources close to the bank said.
“This year NSB is planning a roadshow in some countries as they want to raise international funding this year,” a source said, noting that the roadshow is planned for mid this year. He said that NSB will be the first state bank to raise a dollar bond of this magnitude.
He added that for the past one and a half years NSB was planning on raising international funding.

It was recently revealed that National Development Bank (NDB), one of several designated development financiers, is planning to raise US $ 250 million through a corporate bond issue. Last year’s budget proposed a window for NDB and DFCC to raise long term foreign development finance up to US $250 million each to provide long term funding for Small and Medium Enterprises, plantations, construction industry and other manufacturing industries in the country.

The Treasury said that as an incentive to NDB and DFCC development finance institutions to promote such capital formation, the Government will underwrite the exchange risks of such borrowings.